Financial News
United Airlines cuts 80% of capacity, expects bigger reduction in MayExternal Link

United Airlines Holdings Inc. shares fell in the extended session Friday after the airline announced huge capacity cuts and expects more to come. United shares fell 6% after hours, following a 2.3% decline to close the regular session at $22.89. In a filing with the Securities and Exchange Commission, United said it has cut about 80% of its capacity in April with even larger cuts expected in May. In the meantime, United said it will evaluate and cancel flights on a rolling 90-day basis until demand recovers. The airline said it is losing more than $100 million a day in revenue and that it expects fourth-quarter revenue to be down at least 30% from the year-ago period. Crain's Chicago Business reported late Friday that United has also filed for a federal grant in order to keep paying employees. United shares are down 74% for the year, while the S&P 500 index is down 23%.

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Fri, 03 Apr 2020 22:31:43 GMT
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Trump says CDC recommends that U.S. citizens wear cloth face masks -- but the president will not External Link

President Donald Trump on Friday evening said that the U.S. Centers for Disease Control and Prevention now recommends wearing cloth face masks, to help to slow the spread of COVID-19, the deadly infection that is derived from the new strain of coronavirus that has infected millions of people world-wide. Speaking at a daily White House briefing on Friday to address response to the pandemic, the president said that the CDC guidelines are voluntary. "You can do it," the president said, "you don't have to do it. It's only a recommendation," he added. Trump, however, said that he will not wear a mask. "I don't think i'm going to be doing it," he said.

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Fri, 03 Apr 2020 22:08:49 GMT
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Delta stock falls 7% as Buffett's Berkshire Hathaway sells some of its stake, airline expects worse Q2External Link

Shares of Delta Air Lines Inc. fell more than 8% in the extended session Friday after the airline said its second quarter will be "even more difficult than the first" and Warren Buffett's Berkshire Hathaway Inc. disclosed it sold chunks of Delta stock this week. Berkshire sold nearly 315 million shares on Wednesday and Thursday priced between $22.96 and $26.04, it said in a filing. Separately, Chief Executive Ed Bastian urged more employees to take extended leaves and said the company likely hasn't seen the bottom of the pandemic-related crisis. "This week we closed the books on the first quarter of 2020, and it was unlike any quarter in Delta's history," Bastian said in a memo to employees. The air carrier continued to see passenger volumes and revenues drop; in the past Saturday, it flew about 38,000 people, compared with a normal late-March Saturday around 600,000, he said. "Unfortunately, even as Delta is burning more than $60 million in cash every day, we know we still haven't seen the bottom," Bastian said. The company's April schedule will be about 80% smaller than planned, with 115,000 flights cancelled, Bastian said. Like other airlines, Delta said it submitted paperwork to benefit from government aid, but the funds alone "are not nearly enough" as Delta expects revenue to be down 90% for the second quarter. Without action, that money would be gone by June, he said. Delta asked employers to volunteer for unpaid leaves, including longer-term leave. The company also announced a 25% cut in hours for some employees, "essential to protecting Delta for the long term," the CEO said.

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Fri, 03 Apr 2020 22:05:18 GMT
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Global chip sales hampered as coronavirus spread in China External Link

Global chip sales momentum stalled in February due a falloff in demand from China as the COVID-19 pandemic spread, according to the Semiconductor Industry Association late Friday. While worldwide February sales rose 5% to $34.5 billion from a year ago, they declined 2.4% from January's sales of $35.4 billion, with sales from China falling 7.5% from January. "Global semiconductor sales in February were solid overall, outpacing sales from last February, but month-to-month demand in the China market slipped significantly and the full impact of the COVID-19 pandemic on the global market has yet to be captured in available sales numbers," said John Neuffer, SIA president and chief executive. The PHLX Semiconductor Index is down 22% for the year, while the S&P 500 index is off 23% and the tech-heavy Nasdaq Composite Index is down 18%.

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Fri, 03 Apr 2020 21:40:04 GMT
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SmileDirectClub to furlough workers in response to coronavirusExternal Link

SmileDirectClub Inc. said late Friday it will furlough much of its workforce in response to the COVID-19 pandemic. The teeth-straightening device company said it was extending closure of its retail stores, except those in Hong Kong, until at least May 3, and pulled its guidance for the year. Analysts surveyed by FactSet had forecast a full-year loss of 58 cents a share on revenue of $982.3 million. SmileDirectClub stock declined 0.5% after hours, following a 4.2% decline to finish the regular session at $3.88.

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Fri, 03 Apr 2020 20:57:22 GMT
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